Turbo liquidation of a company in the Netherlands.
A quick guide into a company liquidation.
Knowing how to close a company is just as important as knowing how to open one. If for any reason you want to stop your company there are different ways to do that in the Netherlands. The easiest and least expensive method is by way of a ‘turbo liquidation’. In this blog, we will take a better look at what this method is and what you need to consider.
- What is turbo liquidation?
- The advantages
- The risks
What is turbo liquidation?
A turbo liquidation, the name reveals the meaning already, is a quick way to liquidate a company. This type of dissolution can take place when there are no assets or liabilities left in the company. If this is the case, the shareholders can take a resolution to liquidate the company. Following this decision, the board of directors must notify the Dutch Chamber of Commerce that the liquidation has occurred. When the dissolution has been processed at the Dutch Chamber of Commerce the turbo liquidation is completed.
The advantages
A turbo liquidation is an easy way to end a company. Both the liquidation and the dissolution of the company take place at the same time. Not much paperwork is required for this procedure and there is no need for a liquidator to be appointed. Besides this, the liquidation can be finished within two weeks. All these benefits make this method a much easier way to liquidate a company than the traditional dissolution process, which requires a lot of paperwork, and compliance work and will take at least 3 months to complete. Therefore, turbo liquidation can be a very attractive way to liquidate the company.
The risks
As most good things come at a cost, this is not different when it comes to turbo liquidation. When this method is not conducted correctly, the Dutch Chamber of Commerce may not accept the dissolution, or even worse, there will be a risk that the directors of the company are kept individually liable for certain claims. To avoid this, make sure that you complete all steps in the correct manner.
If you would like to know more, please do not hesitate to contact us and we shall be happy to help you out.
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